Government Proposes Simplified Mortgage Disclosure Forms

Government Proposes Simplified Mortgage Disclosure Forms

Jason Alderman wrote in the Huffington Post (9/21, 500K) "The Blog" that people who are interested in buying a home should consult "Know Before You Owe, the financial education initiative launched last year by the Consumer Financial Protection Bureau (CFPB) to ensure that people receive concise, easy-to-understand information regarding mortgages, credit cards and student loans, among other major financial decisions. (Along with improving financial education, the CFPB is also charged with supervising and enforcing federal consumer financial-protection laws.)" The piece noted that the CFPB is working to simplify mortgage forms. CFPB Director Richard Cordray said, "When making what is likely the biggest purchase of their life, consumers should be looking at paperwork that clearly lays out the terms of the deal. ... Our proposed redesign of the federal mortgage forms provides much-needed transparency in the mortgage market and gives consumers greater power over the exciting and daunting process of buying a home."